Meat Markets

The Pound has remained weak against both the Euro and the Dollar this is helping exports, making imports more expensive and continuing to support UK livestock prices.

Pigmeat

Pigmeat prices continue to rise.  For the week ending 17^th September the EU-spec SPP was up by a further 0.49p per kg to 140.38p per kg.  This is 10p more than at the same time in 2015 and is the first time the price has been over 140p per kg since January 2015.  Latest slaughtering figures show a decline and there is some evidence of a tightening of supplies in the market which should help prices further.  The EU price has also started to rise again (the UK price normally trades at a premium to the EU price).  Strong export demand, predominantly from China has helped strengthen the EU price.  Sales to China more than doubled those of July 2015 and accounted for half of all EU exports.

Beef Market

Despite more cattle coming to market, prices have remained on their upwards trend.  Values have been rising since the beginning of May and are now comfortably above both last year’s price and the five year average.  The market is seeing competition from processors with ‘waiting-lists’ for abattoirs said to be non-existent.  Latest figures from the AHDB show the R4L steer and heifer price both increased by another 2p per kg to 367.9p per kg and 367.6p per kg respectively.  Only R3 Young bulls bucked the trend, easing back by 3p per kg to average 345p per kg.  Over the last couple of years we have seen prices start to decrease from the end of September/beginning of October, but with the balance currently in favour of the producer it remains to be seen if this will happen again this year.

Sheep Market

The finished lamb price, although fluctuating over the last three months has held up pretty well.  Usually we see a seasonal decline from mid-June as more numbers come to the market.  This year, although we saw a decline in late June/early July, prices rose again in July and have not fallen away as happened significantly in 2015.  The ‘Love Lamb’ week and the Muslim festival, Eid al Adha increased demand and helped prices at the end of August.  Deadweight prices have however fallen in the week ending 17^th September by 2p per kg to 406.3p per kg.  Even so the value is 56p higher than last year.  What’s more, prices had risen for the same week last year as Eid al Adha was 11 days later in 2015.  Estimated slaughterings are, however, down on previous years.  Limited grass growth has made it difficult to finish lambs quickly with carcase weights also being less.  Lamb production in August was 6% lower than in 2015, with slaughterings 4% less.  But with June census results showing lambs under 1 years old, 1% higher than in 2015, there should still be plenty of lambs available to come to slaughter and this could put downward pressure on prices.